‘It’s just a fantasy –it’s not the real thing!’

The government’s campaign against “colorum” buses in Metro Manila is a fantasy. Just like in the Billy Joel song, “it’s not the real thing. But sometimes a fantasy is all you need”.

Last Wednesday, while hosting the 2nd Usapan AAP, I learned from LTFRB Board Member Al Pareño that the Land Transportation Franchising and Regulatory Board has only ONE dilapidated patrol car to conduct law enforcement patrols and to monitor an estimated 12,000 buses operating in and around Metro Manila. In contrast, the LTFRB receives around 296 complaints a day against erring bus drivers.

Out of the 12,000 buses, only 5,000 units belonging to an estimated 130 registered operators or franchise holders actually pay the “whopping” franchise fee of P520 a year! Yes, believe it or not, I was told by BM Pareño as well as former LTFRB Chairman Bert Suansing, that the government only collects P520 for every franchise issued! I actually called Bert Suansing on a Sunday just to reconfirm the number because I myself could not believe it, since the very same franchise, when re-sold in the market sells for hundreds of thousands of pesos!

What Bert Suansing added made my blood pressure shoot up! The government charges P520 per application with a required minimum of 10 units. So the government does not charge P520 per franchise, it effectively charges P52.00 per bus! The good news is that the LTFRB charges a supervising fee of P90 per ton equals to 90x15 or P1,350 per bus x 5,000 legit buses equals to P6,750.000. The bad news is all that money goes straight to the General Appropriations fund so the LTFRB does not even get a centavo of the money that is suppose to be for “Supervising” the franchises. Doesn’t that qualify under graft and corrupt practices when you collect money by law but never use it for the intended purpose? To put the last nail on that coffin, I also learned that the LTFRB during the Arroyo administration had waived its right to law enforcement activity and relegated that to the LTO and the PNP. So the double whammy is that the LTFRB gets money for something it no longer has authority for.

Going back to the Usapan AAP forum, I was informed by Mr. Dodo Macapagal from G-Liner that legitimate operators such as G Liner and Dela Rosa Bus lines lose about P10,000 each, per day, because colorum buses trespass into their line of operation. When I asked the G Liner and Dela Rosa Bus Lines representatives, both of whom were senior family members and part owners, if they were willing to pay more for the franchise, both categorically said “YES” if it would mean that the government would seriously take out the illegal operators and colorum buses.

Now the question is: Why has the LTFRB not done anything to correct what has long been a highly disadvantageous arrangement for the government as well as law abiding operators? How can the government continue to collect a fee of P52.00 per bus knowing full well that the amount actually causes losses for the government in actual expense, potential revenues, as well as the cost to service, monitor and conduct law enforcement mandates. If the LTFRB does not even make money, how can we expect them to actually “Regulate”?

For the record, I know full well that Chairman Jaime Jacob merely inherited the system and cannot be blamed for the “crime”, but on the other hand, what does Chairman Jacob and his people intend to do about it?

If LTFRB officials actually conducted a cost and efficiency analysis on the process of acceptance, review and awarding of LTFRB franchises, P52.00 would not cover the man-hours, electricity, paper, equipment and office expenses. But the real slap on the face is the common knowledge that the same franchise fee of P520 and the effective cost of P52.00 per bus (minimum of 10 but unlimited to how ever many an operator can operate) is currently resold for 200,000 per bus. So if ever a current operator decides to migrate, shut down or retire, he can sell his business at a minimum of 200,000 per bus just for the franchise value. If the buses are still usable, the new buyer would have to pay additional for the actual worth of the bus.

It’s simply insane as well as criminal for the PNoy administration to burden commuters with fare increases and greater gasoline consumption when all they have to do is actually collect the money from people and companies who are making a killing but not giving back. Recently, fellow columnist Boo Chanco revealed that certain developers are suppose to pay a sizeable chunk of cash in exchange for the MRT stations being located at particular malls. The money, which amounts to hundreds of millions, still remains to be collected.

In the same breath, the government can also collect millions of pesos on bus franchises, eradicate colorum or illegal operators, increase revenues of legitimate operators, and effectively reduce congestion on our major thoroughfares thereby also reducing fuel consumption, travel time, and save billions of pesos lost to traffic and unproductivity.

We humbly call on the President to correct the situation by way of an Executive Order that reinstates the mandate and responsibility of the LTFRB to resume its law enforcement duties. At the same time, the LTFRB should be allowed to set aside or use the fees collected for supervising, in its entirety. In the same breath, BIR Commissioner and the Department of Justice should be requested to look into going after the Colorum operators under the same category the BIR goes after criminals and Tax evaders. A bus without the franchise is effectively being used in the commission of the crime of tax evasion. They should not be impounded merely in relation to a traffic violation but in commission of a criminal act.

In New York City, they have laws against street racing where if they catch you street racing, your car is not only impounded, but also confiscated and immediately crushed! Since we don’t have crushing plants here, the government should simply have them cut up or chopped up and never to be reused. Only by showing political will can the government earn its keep and earn the respect of its citizens.

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Malacañang or the PNP might also want to look into the colorum Tow trucks operating and victimizing truck drivers and delivery vans on the ground level of the SLEX and South Superhighway using the “lay-by” of the SLEX near Magallanes and Bicutan as their unofficial impounding area. Their backer is reportedly a “General” who obviously does not believe in the fast eroding Daang Matuwid.